Huawei informed some of its clients about the Ascend 950DT AI chip price increase. The company is significantly raising the cost of its most advanced semiconductor to deal with strong demand pressure in the market. Here are the details:
Bloomberg reported that Huawei has increased the price of the Ascend 950DT AI chip by 60% over the past three months. The original price was 150,653 yuan, but it has now become 250,000 yuan.
Notably, the new price aligns well with the Nvidia B200 AI semiconductor. It looks like the Chinese OEM is trying to match the US chipmaker not only in performance but, ironically, also in terms of price to withstand the market crisis.
Nvidia and Huawei often supply their AI chips in batches of eight and slash the price based on the order size and the quantity of equipment, like network components, from each customer.
The Chinese company’s decision of increasing Ascend 950DT chip price hints at the growing demand for its chips – an alternative to Nvidia processors.
DeepSeek has recently been in the news for acquiring around 160,000 high-end Ascend processors. This project could turn out to be the world’s largest cluster of Huawei AI chips.
However, the price increase suggests that Huawei is facing challenges in chip production. Sources further reveal that one of the company’s sales representatives notified customers that the HBM chip supply is limited, increasing costs.
Many reports earlier predicted a cost hike in Ascend 950DT, along with cost changes in Cambricon products of 30%. However, a 60% hike is quite surprising.
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